§ 590 — Definitions

§ 590. Definitions. 1. "Economic profile" means a net cash flow\nanalysis of a financial summary of an average or typical oil or gas\neconomic unit, based upon average or typical income and expense items\npertaining to one or more oil or gas economic units of one or more\nproducers.\n 2. "Economic unit" means all the real property subject to taxation and\nassessed pursuant to this title associated with the exercise of oil and\ngas rights, including the unextracted oil and gas, oil and gas rights\nand any and all equipment, fixtures and pipeline, regardless of size,\nlength or pressure rating necessary to drill, mine, operate, develop,\nextract, produce, collect, deliver or sell the oil or gas to a point of\nsale to a commercial purchaser or the pipeline or equipment of a user,\nincluding wells, well-head equipment, pipes, compressor stations,\nrelated equipment and buildings used to store equipment. Each economic\nunit may include either a single well and the associated property, or a\ngroup of wells and the associated property under common ownership and\noperated as a unit. No economic unit shall extend beyond the point of\nsale or where the gas or oil is delivered to the pipe or equipment of a\nuser, nor shall an economic unit include special franchise property, or\nthe percentage of any pipe, pipelines, equipment or fixtures such as\ncogeneration equipment, which generates income from activity which is\nnot associated with or necessary for the extraction, collection,\ndelivery and sale of oil and gas from the economic unit to a user or\ncommercial purchaser.\n 3. "Oil and gas rights" means any right to drill, mine, operate,\ndevelop, extract, produce, collect, deliver or sell oil or gas located\non or below real property.\n 4. "Producer" means any person, partnership, corporation or other\nassociation or entity owning or operating the working interest in any\noil or gas property.\n 5. "Production year" means the calendar year immediately preceding the\napplicable taxable status date, except that for final city assessment\nrolls required to be filed between January first and May first,\ninclusive, and for all final village assessment rolls, production year\nmeans the second calendar year preceding the applicable taxable status\ndate.\n 6. "Unit of production value" means the value established by the\ncommissioner for purposes of this title for each barrel of oil or\nthousand cubic feet of gas produced in the production year.\n 7. "Exercise of oil and gas rights" means the act or acts of drilling,\nmining, operating, developing, extracting, producing, collecting,\ndelivering or selling oil or gas located on or below real property and\nsuch other acts as are deemed necessary and appropriate for the proper\noperation and development of oil and gas wells.\n